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3rd Outsourcing Summit 2007
J&K invites BPO sector to invest and establish business in the Valley
New Delhi - 10 December 2007
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The Outsourcing companies should start operating in Jammu and Kashmir (J&K) to take the advantage of the local climate, low operational cost, abundant manpower and the policy framework of the State Government, said Mr. Mohd Dilawar Mir, Minister for Tourism, Horticulture, Irrigation and Flood Control, Government of Jammu & Kashmir at the 3rd Outsourcing Summit 2007, organised by the Confederation of Indian Industry (CII) in partnership with Business Process Industry Association of India (BPIAI), here on Monday.
The Minister said that J&K should be part of the growth of Indian BPO industry and the Government of J&K has initiated measures to bring the youth of J&K into the mainstream through establishment of facilities for IT companies. He said that 'Software Park' in Srinagar is an initiative to draw interest of IT companies towards the state and capitalise on the prospects of growth in ITES services.
BPO industry contributes to 9% of GDP whereas employs only 1% of the Indian manpower, said Mr. Deep Kapuria, Chairman, CII (Northern Region) & Chairman & Managing Director, Hi - Tech Gears Ltd. Globalisation should be looked at differently in the business strategy of the BPO industry and innovation should be part of the model to make business sustainable, he said. The BPO industry should look at the 600 million young employable people as the next wave of growth in India and focus on inclusive growth of the country, added Mr. Kapuria.
N Kamalanand, Business Advisory Group, Ernst & Young Pvt. Ltd. said that the outsourcing industry which is currently at US $ 32 billion is expected to generate US$ 62 billion by 2008. He informed that India exports IT products and IT enabled services to 133 countries and 220 of the Fortune 500 companies outsource their software from India.
Speaking on challenges in operation due to appreciating Indian Rupee and talent crunch, Mr. Kamalanand said that the solution lies in extending and defending the core business along with creating value options for the offshore customers. He suggested the Indian BPOs to build on emerging businesses to master operational effectiveness.
Arvind Kapur, Chairman, CII Haryana State Council & Managing Director, RICO Auto Industries Ltd. in his welcome address said that over the years, the meaning of the outsourcing has changed from manufacturing outsourcing to service outsourcing. Indian auto sector is a key area of outsourcing and is poised to reach US$ 1450 by the year 2016 and will employ 25 million people worldwide, he said. On the challenges of outsourcing industry of India, he said that cost arbitrage, training and retaining of manpower and appreciation of Indian Rupee are the main areas of concern.
Kartikeya Bharat Ram, Chairman, CII Delhi State Council & Deputy Managing Director, SRF Group said that the domestic BPO sector is likely to grow over five fold and the revenue generation from the BPO industry is expected to soar to US$13 billion by 2008. He appealed to the government to further support the industry in reducing the operational costs and dealing with anti-offshore legislation issues.
Amit Bhatia, Managing Director, Aspire India, taking the cue from the effective reduction in costs in the supply chains by the manufacturing industry, said that BPO industry should look for investing in making a more effective talent to be made available. In this case he proposed a supply chain of manpower from Tier 2 and 3 cities of India where there is an abundance of skilled employable youth. There is a possibility of cross-border recruitment from Bhutan and Nepal as well, suggested Mr. Bhatia. He indicated that CEOs of BPO companies need to strategically tie up with HR firms to build a continuous reliable and adequately skilled pool of talent not just in Tier 1 but also in the smaller cities and towns of the country.
In the session 'Managing Environmental and Financial Pressures, Dhiraj Lal, Country Manager, Business Continuity Management Institute of India said that on an average, companies loose Rs. 7.7 crores due to lack of business continuity plan. He highlighted the importance of 'business continuity planning' for all organisations as it affects the brand, customer loyalty and employee attrition along with the impact on revenue.
New Delhi
10th December 2007
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